Stonewood defendants wrap up case after calling one witness

After a five-day, three-hospital journey postponed the trial of the two remaining Stonewood mortgage scam defendants, Helen Pedrino and her son, Hendrix Montecastro, have wrapped up their case after calling just one witness.

Pedrino, of Murrieta, and Montecastro, of Baltimore, are defending themselves against charges they defrauded 34 people out of homes and savings totaling $3.6 million. During the monthslong trial in Riverside Superior Court more than 50 witnesses have testified for the prosecution.

On Thursday, Montecastro told Superior Court Judge Jeffrey Prevost that the two were closing their case and not putting additional witnesses on the stand.

The move appeared to be laying the foundation for an appeal, in the event they are convicted of taking people’s property, illegally selling securities and repeatedly giving false information to persuade people to invest in a scheme that rocked Southwest County last decade. The scam is blamed for $143 million in total losses to institutions and people, including $30 million to nearly 400 homeowners.

Montecastro faces 317 felony charges; Pedrino faces 41.

Pedrino, 61, spent Thursday and Friday at Riverside County Regional Medical Center, the county hospital in Moreno Valley, then Friday and Saturday at Sharp Grossmont Hospital in La Mesa. Pedrino and her son have maintained she suffered from dangerously high blood pressure, chest pain and numbness in both arms.

On Monday, a warrant was issued for her arrest after the judge determined, from hospital records, that she was healthy enough to appear in a courtroom. But Pedrino’s husband called an ambulance and she was taken to Inland Valley Medical Center before authorities arrived to execute the warrant.

Later that night, sheriff’s deputies arrested Pedrino upon her release from the Wildomar hospital. Pedrino was back in court Tuesday afternoon, when the defense’s lone witness testified.

Chief Deputy District Attorney Vicki Hightower told the judge she believed Montecastro was setting the stage for an appeal. In declining to put anyone else on the stand, she said, Montecastro appeared to be preparing to make an argument that he was unable to present their case.

For that reason, Hightower asked that Montecastro be instructed to state the names of witnesses he had intended to call and the essence of what they would have said.

Prompted by the judge, Montecastro initially stated that he didn’t know what testimony might have been given. A little later he named one witness whom he said would have testified Montecastro and James Duncan were not business partners.

Duncan, who formerly lived in La Cresta, was said to be the ringleader of the scheme that was centered in Murrieta and bilked millions out of homeowners at the height of the housing boom by persuading them to buy multiple houses. Investors often paid $60,000 to $100,000 more than list prices, with Stonewood partners pocketing the difference.

Duncan and four others charged in connection with the scam have pleaded guilty.

Duncan testified against Montecastro and Pedrino in early December and is scheduled to be sentenced March 15.

Also on Thursday, more than three months after the trial began, Montecastro asked for an attorney as he and Hightower sparred over the prosecution’s 128 exhibits. Montecastro expressed frustration at his failure to block any exhibits, which were undergoing final review before the case goes to the jury.

“I don’t know what all the legal issues are without an attorney,” Montecastro said. “I need an attorney. ... I just don’t understand the legalese.”

Prevost said it was too late to appoint a lawyer and noted Montecastro had already made a decision not to be represented by one.

“Appointing counsel at this point would result in undue delay,” the judge said.

The court spent much of Thursday morning working through two of the 128 exhibits, leading Hightower to complain about the slow progress.

“It’s just crazy how much time we’re wasting,” Hightower said. “We’ll be here for two weeks.”

Prevost agreed too much time was being spent on exhibits, and offered to Montecastro to speed things along by noting objections to every one of them on grounds of authenticity and relevance, in case he should appeal.

“I didn’t expect you to object to every single exhibit, but you have,” the judge said.

Closing arguments are scheduled to be delivered Monday and the case is expected to be turned over to a jury by Tuesday.